Lowe's first quarter profits rise, but stock falls Monday

May 21, 2012 | Posted by: roboblogger | Full story: News Observer

A customer walks into a Lowe's Companies Inc. store in South San Francisco, California, U.S., on Thursday, Aug.

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Since: Jul 11

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#1
May 21, 2012
 

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Story says Appliances, Cabinets, and Millwork sales fell. Gee, I'm sure that has nothing to do with eliminating specialist's commissions.
MDLow

Clio, MI

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#2
May 21, 2012
 

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Probably more to do with the lack of promotions offered in those categories compared to last year.
mickey

Marshfield, MA

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#3
May 21, 2012
 

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Wrong, Appliances have been on sale for 10% for most of q1 and are on sale for 10% for all of q2. Corporate know's the blunder they made elimating spiffs and commission and they are scrambling to figure it out. They are losing valuable people who drive the business. Not to mention the major issues they are having with Vendors. Will someone in corporate have the stones to stand up and do something meaninful. Re-instate commission in some form, allow people to control their income potential and sales will floursish again
MDLow

Davison, MI

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#4
May 22, 2012
 

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Yes and last year they were up to 20% off. See the difference? 10% off is no longer a promo.
2frustrated
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#6
Aug 17, 2012
 

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mickey wrote:
Wrong, Appliances have been on sale for 10% for most of q1 and are on sale for 10% for all of q2. Corporate know's the blunder they made elimating spiffs and commission and they are scrambling to figure it out. They are losing valuable people who drive the business. Not to mention the major issues they are having with Vendors. Will someone in corporate have the stones to stand up and do something meaninful. Re-instate commission in some form, allow people to control their income potential and sales will floursish again
Corporate doesn't have a clue nor the stones, poor policy every which way you look...
DMxMD
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#7
Aug 17, 2012
 

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Idiots. No, you're right. I'm sure you CSAs and specialists are WAY smarter than any of the highly educated people at the CSC, even though they have all the data and you don't even have sales numbers for more than your department. Even with slightly lower appliance sales, they're making more money, because they aren't wasting mo.st on spiffs.
ez

United States

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#8
Aug 17, 2012
 

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It is true that appliance sales have been a little light across the board but I don't believe it has anything to do with the loss of spiffs. I can't give out numbers but my specialists number for EPP is through the roof but our customer count is way low. The 10% off promotion has only be going on for half of the second qrt. So no we also haven't had the same promo from last year. I do see an increase since the induction of the program but I will say Lowes went about it all wrong when the spiffs were taken away.
Devils Fan

Statesville, NC

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#9
Aug 17, 2012
 

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DMxMD wrote:
Idiots. No, you're right. I'm sure you CSAs and specialists are WAY smarter than any of the highly educated people at the CSC, even though they have all the data and you don't even have sales numbers for more than your department. Even with slightly lower appliance sales, they're making more money, because they aren't wasting mo.st on spiffs.
Yet another child like comment from a manager that was making way less than his/her Appliance Specialist. You are probably still mad that they are on the same pay as you now working 10hrs less a week aren't you sweetheart? Remember, Lowe's was reimbursed for that money.

Since: Oct 11

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#10
Aug 17, 2012
 
DMxMD wrote:
Idiots. No, you're right. I'm sure you CSAs and specialists are WAY smarter than any of the highly educated people at the CSC, even though they have all the data and you don't even have sales numbers for more than your department. Even with slightly lower appliance sales, they're making more money, because they aren't wasting mo.st on spiffs.
Sir/Madam-Your comment regarding our education and/or abilities are off the mark.

I have a MBA degree-what is yours? I am a CSA because of my age and the economy. I could be on unemployment but choose to work at Lowes because I am working, staying off the govt dole and it helps my self esteem. I like helping solve customer's problems, I like my direct co-workers and the ability to use my organizational and people skills. If something opens where I will be able to use my management, small business, training and consulting skills-I will leave with an great attendance, and work record-no writeups-I work hard to make my DM look good so he doesn't have to worry about our dept.

There are people at corporate, in store management that have less business and management skills than some of their employees. The economy and Lowes not opening more stores have curtailed the advancement opportunities. When things open up you will find out when your hard working, quality and educated ones leave, it is not a matter of if, it is when.

Since: Oct 11

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#11
Aug 17, 2012
 
PS-I talked to a former MOD at our store when it opened. I asked if the management training includes any people skills training and he said no. If you don't have it coming in you won't get any and from my experience, no coaching to get better. 5-7 years of bad EOS scores indicate that.
nedm

Pembroke, MA

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#12
Aug 17, 2012
 

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Just to note nearly anyone can look at the sale reports..or any reports for that matter on the 9.5 screen.

I won't guess as the sales numbers but they aren't going to bring spiffs back. If HD had spiffs or maybe sears I could see but not now. Hardly anyone pays commissions in retail anymore.
Appliance Man

Marshfield, MA

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#13
Aug 17, 2012
 

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Maybe you should take a hard look at what they have done with appliance prices, since, the loss of commission appliance prices have gone up not down, and if you notice lead times have increased with some of our vendors. If you raise prices and take away incentives to sell to "give us a consistent paycheck, and give our customers considerabley lower prices". Then please explain it to us why prices have gone up and stayed up and our vendors are let's say less than thrilled with Lowe's. The 10million u saved in commission is costing the company dearly......
DMxMD

United States

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#14
Aug 17, 2012
 

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I will not get into another pudding match with devils fan. As for Pedro, I promise I did not intend to trivialize your personal education level or the intelligence of you or your peers. I simply mean it is silly to think that a CSA has the ability to accurately say which policies are positive/negative for the company when their perspective is so narrowly focused in one store and one department. There are very intelligent people at the CSC that make those decisions with all the data and company wide perspective needed to make them effectively. I just grow weary of that old we know better than them attitude. Sometimes the generals moving the peices really do know better than the pawns.
DMxMD

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#15
Aug 17, 2012
 
*Pissing match.

Gotta love auto correct...

Since: Oct 11

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#16
Aug 17, 2012
 

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DMxMD wrote:
I will not get into another pudding match with devils fan. As for Pedro, I promise I did not intend to trivialize your personal education level or the intelligence of you or your peers. I simply mean it is silly to think that a CSA has the ability to accurately say which policies are positive/negative for the company when their perspective is so narrowly focused in one store and one department. There are very intelligent people at the CSC that make those decisions with all the data and company wide perspective needed to make them effectively. I just grow weary of that old we know better than them attitude. Sometimes the generals moving the peices really do know better than the pawns.
I agree sometimes the generals know more but not better unless they have worked on the floor within the last yr or have had their ear to the floor. Nobody knows the job like the person doing it day after day...you want to know what is working and not working-go ask your CSA's, Specialists, and maybe DM's. You cannot always raise sales levels because of the economy-people only have so much money and they have to have a level of confidence that they are going to still be employed at the wage they are. You can improve efficiencies and processes and get rid of stupid procedures/processes which may allow you to do more with less people or make them more available for selling. You want to know what frustrates your employees-go ask them. I taught process improvement in my past life...Lowes has so much low hanging fruit (stupid and wasteful processes, tools etc), that would not cost alot of money. I have tried some of these-employees love them but management says we don't need them...who should you believe?

If you combine the technical knowledge with the common sense and experience of the floor people you have a winning combination that can work wonders. Continue to do what we are doing and you will have a mediocre or losing combination. TEAM-Together We Each Achieve More. To me, this means listening and tweaking and implementing ideas. Teamwork is more than words written on a piece of paper or on a computer and it starts at the top...at least with the SM.
zal front load

Derby, NY

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#17
Aug 17, 2012
 

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As usual, Pedro has a very solid grip on things. Sure in theory the generals know better than the pawns....but very often they are so detached from the realities of daily experiences on the sales floor that they quite frankly know less than the pawns. The majority of decisions that come from corporate prove either an ignorance to what really happens on the sales floor or they are intentionally setting things up to gut payroll to have a short term increase to the bottom line with no regards for future success. Both are bad unless the gameplan is grab the profits now before you let the ship sink.

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